Commentary: Stable forex rate lowers power rate
by Jemin B. Guillermo
Roxas City (11 April) -- As the foreign exchange rate is becoming stable, the public is assured of another round of power rate reduction in the coming months.
A 36.26 centavos per kilowatt-hour electricity rate reduction is expected to be implemented soon after the National Power Corporation (Napocor) has filed a petition with the Energy Regulatory Commission (ERC) for power rate adjustment.
The minimal use of oil-fired power plants and the stable foreign exchange rates were pointed out as the main reasons for the power firm to file twin reduction petitions.
These adjustment petitions cover the power firmís 8th Generation Rate Adjustment Mechanism (GRAM) and 7th Incremental Currency Exchange Rate Adjustment (ICERA).
The combined impact of the state firmís 8th GRAM and 7th ICERA applications will lead to reductions of P0.0430 per kWh in Luzon, P0.3151 per kWh in Visayas and P0.0045 per kWh for Mindanao.
Capiz Electric Cooperative (CAPELCO) General Manager Edgar Diaz said that with the recent announcement of power rate reduction, more consumers here will benefit from it.
Diaz said that the power rate cut will be automatically carried in their electric bills, particularly in the generation and transmission charge.
He stressed that in order to avoid power losses, they are intensifying their efforts to conduct fixing, clearing and maintenance operations in its area of coverage.
According to Diaz, all the 473 barangays in Capiz, including some sitios have already electric power supply. (PIA) [top]